Can you describe how an asset protection trust works?

Video Transcript

An asset protection trust is a form of an irrevocable trust set up by an individual for his own benefit. Anything transferred into the trust remains protected from his creditors. An asset protection trust can be formed in some states, but not in Florida. Some states like Nevada, Delaware, Alaska allow an individual to set up an asset protection trust for his own benefit and have the assets remain protected from his creditors.